Petrol prices set to soar as tax goes up £160 AND supermarket merger may push cost even higher
PETROL prices are set to soar by £160-a-year as Chancellor Philip Hammond has suggested that an eight-year fuel duty freeze could come to an end.
There are also fears that Asda and Sainsbury's mega-merger could send fuel costs even higher.
Fuel prices have soared to their highest level since 2014, while this week has seen prices rise for the tenth week in a row.
The average price of petrol now stands at 131.3p a litre, while diesel costs 134.2p, according to PetrolPrices.com.
But prices could rise even further as the Chancellor has said that keeping the fuel duty freeze in place for the rest of the Parliament would cost the Government £38billion.
The freeze, which was sparked by the Sun’s Keep It Down campaign in 2011, has seen fuel duty kept at 57.95p per litre for both petrol and diesel.
Three ways to cut your fuel costs
HERE are three ways to drive down your fuel costs:
- Make your car more fuel-efficient. You can do this by keeping your tyres inflated, taking the roof rack off, emptying your car of clutter and turning off your air con when driving at lower speeds.
- Find the cheapest fuel prices. Use PetrolPrices.com. All you need to do is enter your postcode and tell it how far you want to travel (up to 20 miles).
- Drive more efficiently. Some ways to do this, include:
- Accelerate gradually without over-revving
- Always drive on the highest possible gear
- If you can, allow your car to slow down naturally as your brake is a money burner
- Re-starting your car is expensive, if you can, keep moving
The Chancellor said in last year's Budget that the continued freeze would save motorists £160 a year.
But speaking in the Commons this week, Mr Hammond said that the freeze is costing the Government "twice as much as we spend on all NHS nurses and doctors each year".
Motoring groups have reacted furiously, saying ending the price lock would hit families and businesses hard.
The AA stormed: “With all the other hikes in family expenses, such as inflation, mortgage costs, domestic energy bills, an increase in fuel duty could be the straw that breaks the camel’s back for many drivers.”
Campaigners said that just a 2p rise in the upcoming Budget would add £50 a year to the fuel costs of a two-car family.
Howard Cox, co-founder of Fair Fuel added: “The Chancellor is so out of touch. He says the Government lost £46billion in revenues because of the duty freeze. Bunkum!
“What would the economy be delivering with pump prices at £1.60 a litre.”
The comments come as a mega-merger between Sainsbury and Asda is being probed over fears it could also send petrol prices sky-high.
The Sun can reveal that the Competition and Markets Authority (CMA) has pledged to study whether the £15billion tie-up could lead to forecourt closures.
Sainsbury's and Asda between them would be the biggest petrol retailer in the country with an 18 per cent market share – bigger than Tesco, BP or Shell.
Tory MP Rob Halfon last month warned the deal could mean the end of price wars and pleaded with the CMA to study whether motorists would miss out.
In a reply seen by the Sun, CMA chair Andrew Tyrie has assured that his officials will ensure campaigners’ concerns are “taken into account”.
He said: “Our duty to promote competition for the benefit of consumers extends across all markets in the UK.
“Our investigation into the proposed merger will therefore cover all products and services in which the parties compete, including the supply of fuel.”
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Speaking last night, Mr Halfon said: “Every way they drive motorists are being hammered with higher costs.
"It is vital that the Asda-Sainsbury merge does not mean more misery for drivers.
“It is why I wrote to the CMA and strongly welcome its investigation to ensure that prices at the pump are kept low.”
Check out our top tips on how to drive down your fuel bill.
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